In 2025, BYD reduced its workforce by about 100,000 employees, bringing total staff to roughly 870,000, as the Chinese EV giant focuses on efficiency in an increasingly competitive market. The company emphasized that the cuts stemmed from restructuring and cost optimization, not declining demand. This move reflects a broader industry trend where automakers are turning to operational efficiency after years of rapid growth.

Revenue Climbs, Profits Face Pressure

Despite the workforce reduction, BYD reported revenue of approximately ¥803.96 billion ($112.3 billion) in 2025, with 4.60 million vehicles delivered, cementing its place among the global top 10 automakers.

However, net profit fell about 19% year-on-year to ¥326.2 billion ($45.6 billion), impacted by intense domestic competition and pricing pressures in China’s new energy vehicle (NEV) market. The decline highlights the growing challenge of maintaining margins as the NEV sector matures.

Overseas Markets Drive Growth

BYD’s exports reached roughly 1.05 million vehicles in 2025, marking the first time it surpassed the one-million mark. To further capitalize on international demand, the company has raised its 2026 export target to 1.5 million units, signaling a strategic push toward global markets to supplement domestic growth.

Sustained Investment in Technology

Even amid margin pressure, BYD maintained robust R&D spending of around ¥63.4 billion, focusing on electrification, battery innovation, and charging infrastructure. The rollout of next-generation technologies—including the Blade Battery 2.0 and expanded fast-charging networks—is expected to strengthen long-term demand stability.

Domestic Market Sees Short-Term Fluctuation

Domestic NEV sales dropped 41% in February 2026, primarily due to seasonal factors around the Chinese New Year. Analysts note that this decline is temporary and not indicative of structural demand weakness, especially as new product launches and infrastructure improvements are expected to support recovery.

Balancing Efficiency and Growth

BYD’s 2025 results highlight a transitional phase for the company: combining workforce and cost optimization with sustained technological investment and global expansion. While revenue and deliveries remain strong, the decline in profits and staff reductions underscore the pressures automakers face in balancing scale, efficiency, and innovation in a rapidly evolving EV market.